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We have a very long experience providing financial tools for investors. That’s why we publish regularly posts about our solutions, because we have always detected that users do not take advantage of many gadgets, features and details developed for them to a better management of their portfolios.

Do you know what kind of financial transactions you can do in T-Advisor? Let’s say that you have your portfolio and you add some assets: either stocks, ETF or mutual funds. The usual operations are “buy” and “sell”. Those are easy, but there are quite a lot of them. Think about that:

If you have funds, you maybe think to transfer from one to another. There are transactions of buy and sell, but transferring the money, not a payment or refund with cash.

What about stock dividends or bond coupons? If you receive those payments, you have to register that increase of capital.

In the case of bonds, they can be cancelled or they can expire, with the subsequent effects in your portfolio.

Again, what refers to shares or ETF, there can also be splits and sold of rights.

However, there are also movements linked to cash, because a portfolio has an associated account. Let’s only think about the different charges that you can register. We show you in this list:

Not bad, huh? T-Advisor has several functionalities that deserve to speak with more details. These are some of them. An investor need a tool that has the right features to register all kind of movements related to his or her assets. This is the way to improve your independent wealth management. This is a reason why we say that we make available professional tools for self-directed investors.

We have several times mentioned that T-Advisor has its own scoring for the assets. It is like the old marks that we got in the school, but this qualification is linked to our investments.

T-Advisor has a module that shows the best assets classified by the score. The question is: Should I include these assets in my portfolio? In fact, this is a good idea, but we do not have to forget two things:

Past performances do not guarantee future ones.

We have to be watchful of our investments, because markets change continuously.

If we look at our monthly top score (that we publish in this blog), we have always found interesting stocks and funds, because they usually have high performances. This fact is clearer in stocks than in funds (specially, in fixed-income funds).

However, it is interesting to see the evolution. It is not usual that top score assets repeat. Markets are naturally unstable, but instability does not mean something negative. It just means that there are continuous ups and downs and investors should regularly look into and watch their portfolios.

Our top score specifies the best performing assets with our best score in a specific moment. They give us clues about countries and sectors that are moving positively. Our score detects also these changes and includes them in the qualification. That is why our score is also live. It is not a mark that provides a position for a long term. On the contrary, it is always near the reality and sudden changes are also detected and included.

Top score assets provide guidelines about possible interesting movements, but investors do not have to move their strategies to certain assets guided by the moment. They have to look at the long term, instead of short-term impulses.

So, if you finally ask: then, what to do with the top score assets? In or out of my portfolio? The answer is: it depends. Check if they match your investment strategy and read the full T-Report. Then, take the decision and check regularly your portfolio and the changes in the scoring in the assets.

We have already written about some relevant figures to manage your portfolio, as the performance evolution, the weight of the assets and the relationship between performance and volatility. There are three other parameters to take into account for your portfolio. They are related to the diversification of the portfolio assets.

It is always said that diversification limits risks and helps avoid high losses. It depends on how it is considered. For instance, you can have several assets, but it does not mean that the whole portfolio is diversified. On the contrary, it can have a low diversification, if the assets are very correlated. In this case, a movement in one of your securities has effects in the others.

Another relevant item to obtain from your portfolio is the risk contribution. These figures explain the proportion of each security to the whole risk of your portfolio. This analysis helps take decisions, as selling a share or a fund if the risk is high related to the performance that it provides to the whole investment.

In the chart above, it is possible to see the different risk contribution of each share to a specific portfolio focused in Germany. If we compare this chart with the weight of each asset, IWKA is the largest, following by Dialog Semicon. However, both have provided the highest unrealised gains (59% and 46%, respectively). On the contrary, BB Biotech AG has unrealised losses of 78.5%, but the weight is 1.83% of the portfolio. That is why its risk contribution is so low.

Finally, the last measure about diversification is diversification benefit. We have already commented about it, but it is interesting to connect this figure with others to analyse the portfolio. Diversification benefit quantifies how much you earn or how much you avoid losing if you diversify your investments.

As the table shows, a diversified investment protects against higher risks, if the investment cycle is negative for you. In this case, the investor is avoiding losing a 24% more.

In T-Advisor, you can also check your diversification in the “follow up” tab of your portfolio report.

As you can see in both articles, it is necessary to analyse your investments from different points of view and connecting different figures to understand the quality of your portfolio. If you do not understand some of these figures, you will have to deal with troubles for your money.

It sounds very nice when you think that you have your own investment portfolio. It is an important step to improve your finances and get your goals. The question is that a portfolio has its own life since its inception and your responsibility as investor is guiding the portfolio to your interests. What are the signals that you have to follow?

Well, there are many figures and parameters to measure the quality of your portfolio, but we will select the main ones in order to get the most important data:

The performance evolution: the figure alone is not enough, because it has to be put in comparison to others. We recommend comparing it with the smart benchmark. This comparison provides the view to understand if we have chosen the right assets or not. For instance, this example shows that we are far from the benchmark and there is a wide improvement to manage.

The weight of the assets in your portfolio: it is also relevant to understand the allocation. If we have a concentration in a country or a sector, there is a high risk to suffer from instability, if the trend changes. Diversification reduces risks, but we can have some assets with lower returns. A good analysis can help us look for similar assets with better figures in order to rebalance the portfolio.

The relationship between performance and volatility: first of all, volatility does not mean necessarily more risky, as we have already commented. However, we can understand the connection between performance and volatility through the Sharpe ratio. This figure shows how profitable an investment is related to the historical volatility. The higher the ratio is, the better the investment is… but this idea is not totally right if we do not compare two assets. You can find two assets with similar ratios but with different figures. We have to look into the numbers to understand if it has a high performance with a high volatility.

T-Advisor, your app to monitor and manage your portfolio investments, has already the new app for iPhone in the AppStore. This is our brand-new app that substitutes completely our older one. The new app provides you an improved version of all the tools that you already enjoy in T-Advisor. Just take your iPhone and enjoy the investment experience.

The screens have a new more user-friendly and flat design, easy to navigate and find all the information that you require for your investments. You can customize your profile uploading your most preferred picture and identifying by your own nickname. You can also obtain ratings from other users to improve your reputation in the community.

Our social and gamification features provide you the chance to compete and compare you results with other members of the T-Advisor investment community. Get medals for every achievement that we propose you! The more medals you obtain, the higher position in the ranking you get. You can set into private or public your portfolio to share just some details of your investments with other community members. In the case of your portfolio is public, you can get followers.

The new T-Advisor app for iPhone maintains all our traditional tools to manage and monitor your portfolios:

Full reports of your investments with all the main figures and charts to take relevant decisions.

T-Reports from thousands of securities to assess the best ones for your investments.

Our alerts module to set all relevant messages to react to any market movement.

A list of investment opportunities and our model portfolios that you can clone in a click.

Usability has been one of our more important developments, so that investments can be perceive as more friendly. Managing your money should be also attractive! Navigate over the menu just with your thumb in short clicks.

Discover T-Advisor 3.0 for your iPhone and download it now from the AppStore. Enter, browse and discover all our new features and what technology can do for your investments. Join our investors’ community!

T-Advisor, as wealth management solution for individuals and professionals, has not only tools for own investments, but also proposals to follow or even copy. That’s why our system has its own model portfolios. They are nine: five related to risk profile (from aggressive to very conservative) and five related to countries (Germany, UK, Spain in Europe and Mexico and Nasdaq 100 in the Americas).

How do they work? We select between four and six ETFs for the risk-profiled portfolios and up to ten stocks for the country portfolios. The main point for us is capital preservation. That’s why our results, when they are negative, are better than the markets. To obtain those results, we rebalance the portfolios every two months. These rebalances let us improve the results, as we exclude the positions more affected by market negative waves and substitute them for better stocks or ETFs. Diversification is also part of the strategy. We select the securities with the best score and relevant figures to obtain the best results.

These are the results for 2016 for our risk-profiled model portfolios:

1-Y-return 2016

1-Y-return 2015

Volatility

Sharpe ratio

Aggressive

5.85%

-2.53%

12.51%

1.51

Dynamic

5.29%

1.47%

11.14%

1.52

Balanced

1.79%

3.53%

6.18%

1.42

Conservative

2.68%

1.52%

2.82%

1.35

Very conservative

0.90%

0.80%

2.07%

0.55

The figures were collected on January, 2nd, and we compare the results of 2015 and 2016. There is a general improvement (except the balanced strategy, although it is positive anyway). We have to remember that the year was quite unstable in the markets, as there have been several surprises that affected negatively. Despite this instability, none of our strategies closed with negative returns.

And now the results of our country portfolios:

1-Y-return 2016

1-Y-return 2015

Volatility

Sharpe ratio

Index

Germany

41.37%

44.70%

14.01%

6.98

6.87% (DAX)

Spain

1.31%

5.74%

16.17%

2.13

-2.01% (Ibex)

México

14.58%

23.96%

13.98%

5.61

+6.20% (IPC)

Nasdaq 100

24.68%

2.97%

9.58%

4.71

+7.50% (Nasdaq)

UK

9.03%

18.32%

15.99%

4.69

+14.43% (FTSE)

Except the UK portfolio, our strategies outperformed their benchmarks, but even the British one obtained a quite good return. The best performer was the German strategy again and the worst was the Spanish, but in this last case, the benchmark Ibex finished with a negative result.

Learn more about our portfolios and the assets included in our platform. Aren’t you tempted to clone them? We have a tool to let our users do it. Let’s try it and compare the results with your investments!

We currently live in a time in which videos has become the main tool to communicate. In our case, we are always on the wave and that is why we have produced a collection of video tutorials to teach how to manage your portfolios in T-Advisor. This collection is organised in our platform in three different items:

I want to plan my investment goal and create a portfolio to achieve it.

I want to analyse my investment portfolio and assess it.

I want to look for assets to create an investment portfolio.

We are aware that our tools have some complexity, if you are new in finances, but we also know that our platform is one of the most powerful and complete in the market. And we offer it for individuals just for 0 euros. These videos and their organisation in three different items depending the personal interests help everyone to enjoy finances.

If you want to take advantage of using T-Advisor, just click on the following links to show these short tutorials and learn more about your platform to manage professionally your financial investments:

We usually write about how to create a portfolio, how to manage it, where to invest or how to include changes in our investments. That’s fine, but we cannot forget that we build and manage a portfolio to reach a financial goal. It can be to buy a house or a car, to save for holidays or the studies of our children or just because we look for a higher return or diversifying our wealth.

T-Advisor last upload tries to cover that point. We have already written about our investment planner, but we missed in that moment a point in which we have work later: how to link that plan with your personal portfolios. You can do it now with a simple click. We explain it easily at the beginning of this video:

A bar reports also if you are on track to reach the target. A relevant point is that you obtain a list of several figures about your goal and its balance. The system is also flexible, because it implements two tools:

An edition tool to change the portfolio linked with your goal at anytime.

A chart to compare your current portfolio allocation with the ideal portfolio allocation for your goal obtained in the planner.

Investments must have a meaning, because nobody invests for nothing. We all have dreams and aims to satisfy and they need money to be accomplished. Investment is a way, but smart investors need the right tools to obtain them successfully. T-Advisor has developed these tools to complete the global process, so that any individual can plan their goals and assign a strategy to achieve it. Now it is your time. What are you waiting for?

In a post that we published two weeks ago, we reported that T-Advisor uploaded a new bootstrapping tool to forward testing assets and portfolios. We explained some ideas about how it works, but we are going to show today the results with specific examples.

For instance, let’s simulate a bootstrapping for S&P 500 for the next 20 years. We can select the highest number of trays: 10,000. The more number of trays we choose, they best probability analysis we get. In this case, these are the results:

Data provide that the maximum possible loss is 25.14% in 4.5 years, but after this point, the poorest result goes up and becomes positive 16.6 years later. Expected probable returns in 20 years are 296%, what means a 15% annually. What does it mean? Investing produces profits in the long term.

The cumulative returns distribution shows also that the highest probability is that S&P performs between -72.9% and 206.82% in around the 40% of the cases.

Let’s get an example from a fixed income fund. It is a bond high yield fund. We simulate with the same conditions: 20 years and 10,000 trays. This is the result:

The maximum possible loss is 17.26% in 5.2 years and it reaches probably the breakeven near the 20th year. Expected probable returns in 20 years are 113%, that means a 5.6% annually. In this case, fixed income performs lower than stocks, but possible losses are also less.

The cumulative returns distribution shows also that the highest probability is that the fund performs between 61% and 124% in around 27% of the cases. There is also a probability of 22.5% of obtaining between -1.4% and 61%. If we compare this figures with the S&P bootstrapping, the range is shorter, that means, it is less volatile.

What can we conclude?

Investing performs positive in the long term and probably with higher returns than other products.

People should forget to become rich in a year when they invest. Results are clear only in the long term. We have to consider shares and funds investing as an asset amongst other ones.

Bootstrapping provides ONLY probabilities, NOT certainties. When we forward test, we obtain signals, clues and ideas about the possible trends. That is why to read carefully and analyse quietly the results.

At the end, investing is a kind of job that needs a very important value: patience.

T-Advisor is a non-stopping machine of innovate ideas to promote easy investments for all. We have opened a channel with tutorials in Youtube and Vimeo where everybody can check how to use all the tools in our platform.

For instance, let’s begin with the creation of an investment portfolio. We have already written about it, but you can get an idea of how easy it is just watching this video:

Now, let’s discover what information you can obtain in T-Advisor to manage your portfolio and make savvy changes to reach a better performance:

Easy, simple, with relevant information, only a few steps: this is T-Advisor, your set of professional tools for smart, independent and self-directed investors.